Within a year, the online payment service Klarna has slipped from being the most valuable start-up into deep red. While the Swedish company still had a full plus of 560 million euros in 2021 and was valued at 45 billion euros, it was in turmoil this year. In the meantime, an operating loss of 760 million euros has been posted. And this despite the fact that the company is continuing its successful run, especially in the USA.
Klarna has already processed online purchases worth more than 58 billion euros this year. On the other hand, there are failed loans in the amount of 390 million euros.
The company offers buy-now pay later purchases. A risk in such bad economic times, because the creditworthiness of buyers is getting worse and worse due to the looming recession.
For the deep red the company was drifting into is also due to negative cash flow of 470 million. In the spring, the valuation dropped to 6.7 billion. CEO Sebastian Siemiatowski had to accept the cuts, especially since, according to Manager Magazin, he had to raise fresh capital.